Traditional vs Coworking Office Space: What Works Best for You

The work landscape has changed dramatically over the last decade. As new technologies and globalisation open up more business and workplace opportunities, companies are reorganising their workforces to be more agile and flexible – further expedited by the ongoing COVID-19 pandemic.

We see this being manifested in the shift from the traditional office space to flexible workspaces. Also known as a rental office or temporary office in Japan, coworking spaces are a newer concept that has gained momentum over the past few years.

The question many companies ask themselves is whether they should go for a flexible office space or stick to traditional office rental. The answer to this depends on what you’re looking for in an office environment. Read on to explore coworking and its benefits for both growing companies and enterprise-level organisations in Japan.

Benefits of Coworking Spaces

1. Cost savings

For all businesses, the office lease can be one of the most expensive components of total overheads. When getting a lease for long-term office spaces, you may be required to first pay either one to three months of key money or up to twelve months of cash security deposit upfront. In addition to the amount needed for interior fit-out and proper office infrastructure, the overall cost of setting up an office can put a huge burden on growing companies in Japan. In fact, Tokyo continues to top the list for the highest office fit-out costs.

The amount of money that a business have to fork out to fully utilise the office space will soon become an overwhelming financial commitment. From paying for electricity, internet, and other utilities to salaries for employees, the total operating expenses (OPEX) can add up quickly.

If you are looking for cost-effective strategies to maximise your company budget, flexible workspaces offer an affordable way for any company to rent desks or offices that come with shared equipment such as printers and photocopiers. When deciding on the various coworking space rentals, you can also consider meeting rooms or other facilities available for members to use as and when there is a need. At JustCo Japan, for instance, you can also make full use of our curated range of professional services offered to members as part of the plan.

If your company is just starting out and needs some time to establish itself in the marketplace, then this may be the perfect solution for you!

2. Flexibility in space

Traditional office lease agreements in Japan lock you in for two to five years. When your business is growing, it is essential to have enough space to accommodate new hires that come on board. In fact, it is quite common for a company to settle into one location and then outgrow it within a year or so. Yet, when it comes to finding the office space necessary to accommodate growth, the search can be exhausting in Japan. This makes the office lease agreements costly – especially penalty fees incurred should you break the contract, plus the additional costs you need to put in for fit-out projects. The same applies to downsizing your company.

Should there be a need to expand or downsize, it is a more viable option to choose coworking spaces that are customisable to your changing needs. The flexibility they render makes such spaces appealing to businesses growing in size and constantly having to make room for larger teams. Without being tied down to long-term leases, this type of working arrangement gives companies the freedom to rightsize accordingly and save money on operational costs such as rent and utilities.

3. Adaptability

As the pandemic situation evolves continuously, the uncertain future weighs on the minds of every business. Companies are seeking to reduce capital and operating expenses by cutting office space and hiring more remote workers. Even as office supply in Tokyo reached the second-highest level in history last year, traditional office leases are expected to be cancelled as some may opt to shrink their space for more efficient use of available resources and introduce flexible working arrangements for employees as the new norm.

It has become more important to minimise impact to work arrangements caused by unpredictable factors whilst ensuring business continues uninterrupted. This means providing avenues for remote workers to collaborate beyond teleconferencing. Available for rental, shared office spaces in Tokyo are designed to offer productive and collaborative workspaces via hot desks, conference rooms or even private office studios. With JustCo Japan conveniently located in Toranomon, organisations big or small can now consider implementing flexible work arrangements for your employees living in Shimbashi, Roppongi and other nearby areas in Tokyo.

How to Find the Best Coworking Spaces in Tokyo

Before committing to a traditional office, consider choosing the ideal working space with all-in-one facility management and the essential office necessities covered here at JustCo. With just a basic plan starting from ¥15,000 per month, you get to enjoy the full suite of amenities in our shared spaces such as meeting rooms, business-grade printing services and IT support. Get started on finding your dedicated working space that’s move-in ready for you to make a smooth transition.